I read the recent news of GSK's $3 Billion settlement due to improper marketing. The civil and criminal fraud cases that totaled the largest settlement for fraud in health care. For the full story you can go here. I wonder how this will change things both for the pharmaceutical companies and the marketing/advertising agency they work with. Now that GSK will be under more scrutiny than ever, will their strategy change? I also wonder if the different agencies they work with will react differently.
Although $3 Billion is just 7% of their 2011 revenue, it is still a sizable chunk of change. It seems to me that, while no one wants to be micro-managed, someone needs to keep an eye on things. I would think that some poor sole inside GSK will be tasked with going through all materials with a fine tooth comb, again and again. I have no idea how this will change future sales of GSK products but I have a feeling they will live to fight another day.
What are your thoughts on the matter?
